Kerrville, Texas Short Term Rental Regulations Guide for Airbnb hosts

Overview: Are Short-Term Rentals Allowed in Kerrville, TX?

Yes, short-term rentals are explicitly allowed in Kerrville, Texas. The City of Kerrville has established a comprehensive regulatory framework for short-term rental operations through Ordinance 2022-30, which created Chapter 80 of the municipal code, and Ordinance 2022-28, which amended the zoning code to specify permitted locations. Short-term rentals are permitted within specific zoning districts and require annual registration and compliance with all applicable regulations.

What do Airbnb hosts actually earn in Kerrville?

Kerrville hosts earn a median $21,629/year with $188 ADR and 41% occupancy.

Top performers pull in $33,355+ per year.

See the full Kerrville market breakdown

How to Start a Short-Term Rental Business in Kerrville

Starting a short-term rental business in Kerrville requires a systematic approach to ensure compliance with city ordinances and state requirements:

Step 1: Verify Zoning Compliance

Before proceeding, confirm that your property is located within one of the permitted zoning districts:

R-1A: Single-family residential with accessory dwelling unit
R-3: Multifamily residential district
RT: Residential transition district
DAC: Downtown arts and cultural district
MU: Mixed use district

Contact the Development Services Planning division for zoning verification if needed.

Step 2: Obtain Required Permits and Registration

Complete registration through MyGovernmentOnline portal
Submit a fully completed application for review
Pay the initial registration fee of $100
One permit is required per individual unit
Permits are valid for one year and must be renewed annually

Step 3: Register for Hotel Occupancy Tax

Register with the city's HOT reporting system
Begin collecting occupancy tax from guests
Submit monthly reports and payments by the 15th of each month for the previous month's stays

Step 4: Ensure Ongoing Compliance

Maintain records for at least five years for potential audits
Display required guest notifications
Comply with all city codes and regulations
Respond promptly to any code enforcement inquiries

Required Documents, Permits, Licenses, and Guidelines

Municipal Permits and Registration

STR Permit: Required for all short-term rental units operating within city limits
Application: Must be completed through MyGovernmentOnline
Initial Registration Fee: $100 per unit
Annual Renewal Fee: $50 per unit
Application Requirements: Full application with all required documentation

State and Local Tax Requirements

Hotel Occupancy Tax (HOT): Must be collected from guests and remitted monthly
Registration for HOT: Required through city HOT reporting system
Monthly Reporting: Due by the 15th of each month for the previous month's collections

Documentation and Record Keeping

Financial Records: Must be maintained for at least five years
Guest Information: Proper notification and information posting required
Contact Information: Local representative contact details must be provided to the city
Updated Documents: Any changes to original application must be reported

Specific Regulations for Short-Term Rentals

Zoning and Location Requirements

Short-term rentals are permitted only within the following zoning districts:

R-1A (Single-family residential with accessory dwelling unit): Allows primary single-family homes plus one accessory dwelling unit
R-3 (Multifamily residential): Permits multiple apartments or condominiums on single lots with major arterial/collector street access
RT (Residential transition): Designed as transition between single-family residential and commercial areas
DAC (Downtown arts and cultural district): Pedestrian-oriented center in the historic business district
MU (Mixed use): Allows combination of residential and nonresidential uses

Operational Requirements

Parking Requirements

Standard Requirement: One off-street parking space per bedroom
Manager Requirement: Additional off-street parking space required if manager does not live onsite
Maximum Occupancy: Cannot exceed 10 guests total
Off-Site Manager: If manager lives off-site, dedicated parking space is required

Signage Regulations

Maximum Signs: No more than one non-illuminated on-site sign permitted
Flush-Mounted Signs: Must not exceed one square foot in size
Freestanding Signs: Must be placed at least 20 feet from any property line, cannot exceed six square feet in size and three feet in height
Compliance: All signage must comply with the City's Sign Code

Guest Notification Requirements

Required Posting: Guest notification must be displayed in a conspicuous place within the rental unit
Content: Must include local contact information and relevant property rules

Local Contact Requirements

Designated Representative: Owner/operator must provide contact information for local representative
Response Time: Local contact must be available within approximately two hours distance

Occupancy Limitations

Maximum Guests: Ten (10) guests total
Owner Discretion: Operators may set lower occupancy limits but cannot exceed ten guests
Zoning Compliance: All operations must comply with underlying zoning regulations

Enforcement and Compliance Monitoring

Complaint Process

Phone Reporting: Contact Code Enforcement at 830-258-1172
Email Reporting: donna.bowyer@kerrvilletx.gov
After-Hours: Use City of Kerrville App (available on Apple Store and Google Play)
Emergencies: Contact Police Department or 911

Audit Requirements

Record Retention: Maintain all records for at least five years
Audit Authority: Subject to audit by both city and state
Contracted Audit Services: City contracts with Avenu Insights & Analytics for random annual audits

Permit Cancellation

To cancel a permit, contact Code Enforcement at 830-258-1172 or email donna.bowyer@kerrvilletx.gov.

Contact Information for Local Authority

Primary Contacts

Code Enforcement Division
- Phone: 830-258-1172
- Email: donna.bowyer@kerrvilletx.gov

City of Kerrville Main Contact

Address: 701 Main Street, Kerrville, TX 78028
Phone: 830-257-8000
Website: www.kerrvilletx.gov

Department-Specific Contacts

Development Services Planning Division: For zoning verification and planning questions
Finance Department: For Hotel Occupancy Tax inquiries

Online Resources

MyGovernmentOnline Portal: For permit registration and renewals
City of Kerrville App: For after-hours complaint submission

Links to Source Pages

Primary City Resources

Official Ordinances

Additional Resources

News and Updates

This comprehensive guide provides all the essential information needed to legally operate a short-term rental business in Kerrville, Texas. Investors should carefully review all requirements and maintain ongoing compliance with city ordinances and state regulations to ensure successful operations.

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Ask the AI Advisor about Kerrville

Kerrville is a small city of roughly 24,000 residents that serves as the county seat of Kerr County, Texas, nestled in the rolling terrain of the Texas Hill Country along the Guadalupe River. The town has a laid-back, artsy character shaped by its riverfront setting, its strong outdoor and music traditions, and its long-running role as a weekend escape for residents of larger Texas cities. Kerrville is perhaps best known for the Kerrville Folk Festival, an annual music gathering that has drawn songwriters and audiences to the area for decades, and as a gateway to the broader Hill Country, including its wineries, small historic towns, and state natural areas. It sits about 60 miles northwest of San Antonio and roughly 100 miles west of Austin, putting it within an easy drive of two major metropolitan populations.

The Guadalupe River is the defining natural feature of Kerrville, winding right through town and drawing visitors year-round for tubing, kayaking, and fly fishing. Outfitters in and near the city rent tubes and kayaks during the warmer months, and the river's cypress-lined banks make it one of the most scenic stretches of Hill Country water. The river's headwaters rise far to the west, but Kerrville sits in a particularly photogenic reach of it. Information about the river's course and significance can be found on its Wikipedia page.

About an hour west of Kerrville, Lost Maples State Natural Area is one of the region's marquee outdoor destinations, prized for its rugged canyon landscapes, miles of hiking trails, and stands of bigtooth maples that put on a vivid fall display unusual for central Texas. The park's remoteness and limited daily entries give it a quieter feel than many better-known Texas parks, and it rewards both casual day hikers and longer backpackers.

To the northeast, roughly 90 minutes away, Enchanted Rock is a massive pink granite dome that has drawn visitors for generations. Managed as a state natural area, it offers a short but steep scramble to the summit, panoramic Hill Country views, and a network of trails through the surrounding Llano Uplift landscape. It pairs naturally with Kerrville as a day-trip anchor for guests exploring the region.

Closer to home, the Kerrville area is also a useful jumping-off point for Fredericksburg, Comfort, and other Hill Country wine and antique towns strung along Highway 290, as well as for the Museum of Western Art and the sculpture garden of the Hill Country Arts Foundation in nearby Ingram.

Kerrville's combination of river recreation, festival programming, and proximity to some of the most photographed corners of the Texas Hill Country makes it a natural fit for short-term rentals. Guests tend to come for a blend of outdoor adventure and small-town charm, and the steady flow of weekend visitors from San Antonio and Austin, along with seasonal event traffic, gives the market a year-round rhythm that rewards well-placed properties.

Kerrville, Texas

Generally Investor Friendly

STR Regulations for Kerrville, Texas